2
Financial institutions have unique relationships with small to mid-sized
businesses (SMBs). Years of support, and sometimes even side-by-side
collaboration, naturally position banks as trusted partners. This distinctive
personal-professional connection is a great benefit for banks—especially
when it comes to retaining their SMB clients in an increasingly competitive
marketplace.
Why Do SMBs Trust Their Banks?
• Solid foundation and earned trust built on years of
service and collaboration.
• Growth partner innovating together to help
address and solve SMB concerns.
• First, local contact for SMB credit requests and
overall financial wellness.
Though banks are well-positioned to support SMBs' financial wellness,
they often lack the integrated software solutions needed to do so.
Financial wellness is a growing concern for a majority of Americans–
especially the 32 million underserved SMBs struggling to make their way
in a post-COVID economy. These SMBs are looking beyond their primary
banking relationships for solutions to everyday stressors: payments,
accounting, taxes, insurance, SMB lending, and more.
For example, many SMBs rely heavily on spreadsheets to track customer
invoices and payments. Because most banks do not or cannot support
on these tasks, SMBs look elsewhere. Two-thirds already use an external
service, app or platform for financing, accounting, or payments¹ and a
growing number said they would consider switching from legacy providers
to FinTech newcomers.²
